Does Individual Disability Insurance Cover Part Time Work?

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When you purchase an individual disability insurance policy, you must be working at least 32 hours a week to qualify for benefits.

If you have a noncancelable, guaranteed renewable policy, you will still be covered if you work fewer hours per week after your policy is in force, as long as you pay your premiums. In this circumstance, the only time they can cancel your policy is for nonpayment of premiums.

For example, I had a pediatrician that purchased her policy while in medical residency. Upon completion of her residency,she worked full time in a private practice at 40+ hours a week. We increased her coverage to cover her new income. A few years later, she had children and reduced her hours to an average of 20 hours a week. After her second child was born, she had major complications that caused her to be completely incapacitated for 2 years. She was unable to get out of bed due to a severe muscular disorder. Although she was only working 20 hours a week, she was considered totally disabled and the policy paid her full benefits.

The exception to this rule is when the policy becomes “conditionally renewable” after the age of 65. At that time, you need to prove you are working at least 32 hours a week to keep your policy.

For more information about individual disability insurance, part time coverages or to request a quote comparison, contact Set for Life Insurance today!

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